Digital Influence On Financial Services Among Multicultural Audiences

Digital Influence on Financial Services Among
Multicultural Audiences
Methodology
IAB conducted a custom analysis of syndicated Prosper Insight data to look at consumer and media behaviors of investors, defined as US adults 18
or over who answered the question ‘Which of the following investments do you currently have?’ with ‘Annuities’, ‘Bonds’, ‘Company sponsored 401k’,
‘Mutual fund investments’, ‘Stocks in companies’ or ‘Treasury Bills.’ Investors were compared to the general Adult 18 and over population in the US. The
report was supplemented with the media influence of investors. The study compared the purchase plans and influence of various media types on US
Adults 18 and older and compared them to Hispanic Americans, African Americans and Asian Americans 18 and older.
The report is derived from the Prosper Insights & Analytics Monthly Consumer Study (May 2017) of 7,335 respondents surveyed online which focused on
the 4,839 respondents who invest and the annual 2017 Media Behaviors & Influence™ (MBI) Study of 16,644 respondents surveyed online, focusing on
the 6878 respondents who invest. This is supplemented by data from the annual 2017 Media Behaviors & Influence™ (MBI) Study of 16,644 US adult
respondents surveyed online with a focus on media influence and behaviors among the general adult US population (16,664 respondents), Hispanic
Americans (2574 respondents), African Americans (2405 respondents) and Asian Americans (471 respondents). The studies have a margin of error of
1%, at a 99% confidence level.
Sample Sizes
• Prosper Insights & Analytics Annual Media Behaviors & Influence™ (MBI) Study
• 16,644 Adults 18+ representative of the general US population
• Prosper Insights & Analytics Monthly Consumer Survey conducted online in May 2017
• 7,335 Adults 18+ representative of the general US 18+ population
About Prosper Insight™
Prosper Insight delivers customized timely market intelligence from various sources through its cloud-based technology-driven Integrated Solutions Platform. Solutions are delivered
on multiple devices (PC/Tablet/Smartphone) though the InsightCenter™ tool using diverse information sources relevant to clients’ business needs. www.GoProsper.com.
2 Digital Influence on Financial Services Among Multicultural Audiences, IAB, July 2017
Summary
Who Are Investors and What Are They Invested In?
Over half (52%) of US adults are invested in the stock market via stocks, 401ks, IRAs or other investments. They tend to be
35 and older and earn over $75k.
Roughly half of investors have a 401k (55%) or IRA (46%). 40% own stocks directly and 35% invest in mutual funds. These
numbers are higher for multicultural groups. IRAs and Stocks are among the top 3 consumer investment properties and
African Americans are more likely to own stocks than IRAs. Also, bonds are more popular than annuities among
multicultural investors.
Investors are saving more, providing investment opportunities.
Consumer confidence is up, particularly among investors, with July showing the highest rating this decade.
Over two-thirds of investors (69%) would invest in the stock market.
Investors are financially secure: They report that they are saving enough, financially better off and financially stable.
Multicultural investors are more likely to report being better off than a year ago but less likely to feel financially stable.
What Are Their Financial Plans?

Investors have immediate financial plans: In the next 3 months, one-third plan to increase savings or pay down debt, 12%
plan to buy stocks and 5% plan to refinance.
Financial plans vary by multicultural group: Paying down debt is most important among Asian and African American
investors. Hispanic and African American investors are 3x more likely than the general population to refinance their home.
Investors, especially among multicultural groups, are more likely than the general population both to own credit cards and
to open new accounts whether credit cards, savings, brokerage accounts or trading.
While all multicultural groups are more likely to do any of these activities, Hispanic and Asian investors are much more
likely to open a new credit card account
3
Digital Influence on Financial Services Among Multicultural Audiences, IAB, July 2017
Summary
What Financial Services Do Investors Use? Are They Planning to Buy or Switch Insurance?
Multicultural consumer investors are more likely to use a variety of financial services.
Asian American investors are nearly twice as likely as the general population to open a new bank account and Hispanic
investors are twice as likely to open a new broker/trading account.
African American investors are more likely than the general population to use a Credit Union and less likely to use a
bank. Asian and Hispanic investors are more likely to use insurance services.
Investors are more likely to buy or switch insurance (41%), especially auto (28%). This is especially true of multicultural
consumer investors. Nearly two-thirds of Asian and Hispanic investors plan to buy or switch insurance. Asian
Americans are more likely to buy or switch any type of insurance.
What Media Has Influence on Consumers’ Financial Services Purchases?

Word of mouth, internet, TV and articles have the most influence on consumers’ financial services and insurance
purchases, especially among multicultural consumers.
The internet has more influence than TV for financial services and insurance and is the #1 influence among Hispanic
and Asian Americans.
All digital media formats influence financial/insurance purchases are more influential among multicultural consumer
investors.
Search is also important in consumers’ financial services and insurance Decisions: Roughly two-thirds of investors
(64%) and half (53%) of all consumers search online for financial info or services. These numbers are even higher for
multicultural consumers, especially Asian Americans.
Financial Services and
Digital Influence
Who Are Investors and What Are They

Invested In?
5
Over Half of US Adults Own Stocks
52% of the US population is invested in the stock market
US adults 35 and older and those who earn over $75k are more likely to invest
US Adults Invested in the Stock Market
by Age and Income*
US Adults 52% 48%
18-34 38% 62%
35-54 62% 38%
55+ 56% 44%
Salary: Investors Non-Investors
<$30k 23% 77%
$30k-$74,999 50% 50%
>$75k 79% 21%
6 Digital Influence on Financial Services Among Multicultural Audiences, IAB, July 2017 *Source: Gallup, March 2017
Among Consumer Investors, Roughly Half Have a 401k or IRA
40% own stocks directly and 35% invest in mutual funds
Consumer Investments
Which of the following investments do you currently have? (Check all that apply)
(among Consumer Investors, defined as US adults invested in at least one of the following)
Company sponsored 401K 55%
Individual Retirement Account (IRA) 46%
Stocks in companies 40%
Mutual fund investments 35%
Annuities 26%
Bonds 25%
Treasury Bills 5%
Investors
Investments Vary Among Multicultural Groups
The most popular consumer investment is the 401k, especially among multicultural groups.
IRAs and Stocks are among the top 3 consumer investment properties with African Americans more likely to own stocks than IRAs.
Bonds are more popular than annuities among multicultural investors.
Consumer Investments
US Investors US Adults
Which of the following investments do you currently have? (Check all that apply)
(among Consumer Investors, defined as US adults invested in at least one of the following)
Adults 18+ Hispanic African American Asian
401K 55% 401K 64% 401K 59% 401K 57%
IRA 46% IRA 36% Stocks 35% IRA 45%
Stocks 40% Stocks 36% IRA 30% Stocks 35%

Mutual Bonds 24%
35% Mutual funds 26% Mutual funds 35%
funds
Annuities 26% Mutual funds 23% Bonds 26% Bonds 22%*
Bonds 25% Annuities 20% Annuities 21% Annuities 15%*

Treasury Treasury Bills 7% Treasury Treasury
5% Bills 6%* 7%*
Bills Bills
8 Digital Influence on Financial Services Among Multicultural Audiences, IAB, July 2017 *Low sample size. Use directionally.
Consumer Investors are Saving Enough and are Financially Better Off
• Multicultural investors are more likely to report being better off than a year ago but less likely to feel financially stable.
Investors are…
Saving Enough Financially Better Off Financially Stable
How do you feel about the following statement? Regarding your personal financial situation, compared How do you feel about your overall
"I am saving enough to meet my future needs." to this time last year, are you... financial security?
Please tell us using a scale of
92%
87% 89%91% 1 ("Very insecure/financially vulnerable")
to 5 ("Very secure/financially stable").
83%
63%63%
58%
54%
49%
45%
42% 40%40%40%
Agree/Completely Agree Same/Better Off Somewhat/Very Financially

Stable
Adults Investors Hispanic Investors African Am. Investors Asian Investors
Consumer Confidence is Up From a Year Ago
Consumer Confidence
Which one of the following best describes your feelings about chances for a strong economy during the next 6 months? (Confident/Very Confident)
Adults 18+
June 2017
Year Over Year, Consumer Confidence in July was the
Highest this Decade
Consumer Confidence
July 2007 – July 2017
Consumer Investors are More Confident in the Economy,
Especially Multicultural Investors
Consumer Confidence in Economy Consumer Confidence in Economy
Adults Investors
67%
62%
56% 57%
54%
58% 50%
52%
US Adults 18+ US Investors Hispanic African American Asian

May 2017
Over Two-Thirds of Investors Would Invest in the Stock Market
Nearly three-quarters of African American Investors are confident in the market
Slightly fewer Asian American Investors are confident in the stock market
Please tell us your feelings towards investing in the stock market? (Confident/Very Confident, Would Probably/Definitely Invest)
Investor Confidence in the Stock Market
Consumer Investors 69% 31%

Would
Definitely
Would Invest Not
Would Not Invest Invest
Hispanic Investors 69% 31%
African American 73% 27%

Investors
Asian American 66% 34%

Investors
Would definitely/probably invest (You are Confident)
Would definitely/probably not invest (You are not confident)
Digital Influence
What Are Their Financial Plans?
14
Financial Plans Vary Among Multicultural Groups
Multicultural groups are more likely to take financial steps in the next 3 months.
Paying down debt is most important among Asian and African American investors.
Hispanic and African American investors are 3x more likely than the general population to refinance their home.
Financial Plans by Age Group
Which of the following financial steps are you planning to take in the next 3 months? (Check all that apply)
Increase Increase 37% Pay down 34% Pay down

33% 34%
savings 29% savings 32% debt 30% debt 33%
Pay down Pay down 35% Increase 33% Increase
32% 27%
debt 31% debt 32% savings 33% savings 24%
Pay with Pay with 22% Pay with 22% Pay with
16% 15%
cash more 15% cash more 19% cash more 21% cash more 14%
12% Buy Stocks 14% 13% 17%

Buy Stocks 9% Buy Stocks Buy Stocks
8% 9% 13%
Refinance 16% Refinance 16%
Sell Stocks 6%
4% home 11% home 10% Sell Stocks 8%
7%
*
Refinance 5% Sell Stocks 9%
Sell Stocks 8% * Refinance 9% *
home 4% 6% 5% home 7%
15 Digital Influence on Financial Services Among Multicultural Audiences, IAB, July 2017 *Low sample size. Use directionally.
Digital Influence
What Financial Services Do Investors

Use? Do They Plan to Switch
Insurance?
16
Investors are Planning to Open New Accounts
1 in 5 is planning to open a new credit card account
Roughly 1 in 10 is planning to start trading or open a trading account
Are you planning on doing any of the following financial activities in the next 12 months? (Check all that apply)
20%
Open a credit card account
16%
16%
Open a bank account
15%
11%
Start trading in the stock market
7%
9%
Open a broker/trading account
5%
Multicultural Consumer Investors are Much More Likely
to Open New Accounts
While all multicultural groups are more likely to do any of these activities, Hispanic and Asian investors are
much more likely to open a new credit card account
Asian American investors are nearly twice as likely as the general population to open a new bank account
Hispanic investors are twice as likely as the general population to open a new broker/trading account
Financial Plans
Are you planning on doing any of the following financial activities in the next 12 months? (Check all that apply)

30% 34%
Open a credit 20% 36%
card account 22% 31%
16% 26%
29% 32%
Open a bank 16% 28%
account 23% 27%
15% 23%
Start trading in 11% 19%

19% 20% *
the stock market 7% 11%
11% 14% *
Open a
9% 18%
16% 17% *
broker/trading
account 5% 8%
8% * 11% *
*Low sample size. Use directionally.
Use of Financial Services Varies Among Multicultural Groups
African American investors are more likely than the general population to use a Credit Union and less likely to
use a bank
Asian and Hispanic investors are more likely to use insurance services
Multicultural groups are more likely to use S&Ls and check cashing companies
Financial Services Used
Which of the following do you use for banking & financial services? (Check all that apply)
79% 83%
83% 83% 68% 78%
Bank 74% 74%
42% 26%
35% 35% 27% 21%
Credit Union 27% 24%
24% 30%
Brokerage Firms 33% 28% 8% 17%
15% 10%
21% 29%
Insurance 19% 24% 20%
12% 10%
Companies 11%
Savings & 13% 19% 19% 19%

16%
*
12% 11%
Loans 9%
Check Cashing 5% 11% 13% 12%

9%
*
7% 8%
Companies 4%

(Yearly. Investors: Asian: at 25% n=61), Afr Am. 8% n=58, Hisp. 6% n=55)
Multicultural Groups are More Likely to Buy or Switch
Insurance, especially Auto
Nearly two-thirds of Asian and Hispanic investors plan to buy or switch insurance
Asian Americans most likely to buy any type of insurance.
Insurance Purchases Planned by Age Group

Are you planning on buying or switching any of the following types of insurance in the next 12 months? (Check all that apply)

41% 61% 55% 67%
Any Insurance 48%
35% 43% 55%
Auto 28% 43% 35% 44%

23% 32% 25% 36%
Health 20% 31% 26% 39%

16% 23% 19% 31%
Homeowners 19% 27% 21% 37%

12% 14% 11% 23%
Life 14% 22% 27%

10% 13% 24%
16% 19%
Renter's 6% 10% *
12%
5% 7% 11%
8% 7%
20 Digital Influence on Financial Services Among Multicultural Audiences, IAB, July 2017 *Low sample size. Use directionally
Digital Influence
Which Media Influence

Consumers’ Financial Services
Purchases?
21
Word of Mouth, Internet, TV Have More Influence on Multicultural Consumers’
Financial Services Purchases
The internet is the #1 influence on Hispanic and Asian Americans for Financial Services and Insurance
Purchases
Top Media Influences on Financial Services/Insurance Purchases by Age Group

Please tell us which of the following media influences your Financial Services/Insurance purchases:
25% 29%
22% Internet Word of Mouth 27%
Word of Mouth 21% Internet
19% 22% 23%
Word of 22%
Internet
20%
Mouth 19% Internet
26% Word of 19%*
18% 20% Mouth 17%
13% 17%
TV/Broadcast
11%
TV/Broadcast
13% TV/Broadcast
21%
TV/Broadcast
19% *
16% 16%
Digital Media Influence Financial/Insurance Purchases,
Especially Among Multicultural Consumer Investors
African American investors are more likely to be influenced by digital media
Hispanic American investors are more likely than any other group to be influenced by social media
in these purchase decisions
31% Digital Media Influence on Financial Services/Insurance Purchases

28% 29% Please tell us which of the following media influences your Financial Services/Insurance purchases:
US Investors Hispanic Investors African American Investors Asian American Investors
20%
14%
13% 13%
12% 12% 12%
10%
8% 9% 8%
9%
8%
7% 7%
6%
5%
4% 4%
*
6%
3% 3%
Internet Email Advertising Social Media Mobile Websites and Digital Video (on Blogs Internet Radio Text Messaging on
(Facebook, Twitter, Apps (Smartphone, Mobile Device or Mobile Device
Instagram, Pinterest, Tablet) Computer)
etc.)
Media Influence on Asian American Investors for
Digital Influence on Financial Services Among Multicultural Audiences, IAB, July 2017 some media not shown due to low sample size.
23
Multicultural Consumers are More Likely to Search for Financial
Services
Asian Americans even more likely to search
Please tell us how often you search online for the following (Regularly/Occasionally).
Regularly means routinely, as a set pattern; Occasionally means no set pattern, as mood suits):
Financial Information/Services
Search for Financial Info/Services
Adults Investors
86%
81% 79% 77%
64% 66% 68%
53%
US Adults 18+ US Investors Hispanic African American Asian
Implications
Implications
Consumer confidence is up and more and more consumers, particularly multicultural consumers, are
investing in the market in some way: Stocks, 401ks, IRAs, bonds or mutual funds. These investors are
likely to use a variety of financial services. Moreover, they are planning to open new accounts and to buy
or switch insurance. In short, they provide a lucrative opportunity for financial service and insurance
advertisers seeking to reach their target audience.
US consumers, especially those invested in the stock market, say that the internet is their top influence
after word of mouth in financial service or insurance purchases. In fact, the internet holds more sway than
TV over their financial service purchase decisions. Multicultural investors are even more influenced by
digital media, saying the internet outweighs word of mouth as their #1 influence in insurance and financial
service purchases. Other digital media formats also have greater influence on multicultural consumer
investors’ finance purchases.
Most investors, particularly multicultural investors, say that they’re likely to do online searches about
financial and insurance companies. They also report that a variety of media types, both online and
traditional, influence their online searches. This emphasizes the importance of including digital media in
cross media ad campaigns. While both traditional and digital media inspire online searches, the internet is
most likely to influence their financial services purchases, particularly among multicultural audiences.
Digital Influence on Financial Services Among
Multicultural Audiences
Questions?
Kristina Sruoginis
IAB Research Director
Kristina@iab.com

Digital Influence On Financial Services Among Multicultural Audiences

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Digital Influence on Financial Services Among

What Are Their Financial Plans?

What Media Has Influence on Consumers’ Financial Services Purchases?

Who Are Investors and What Are They

US Adults 52% 48%

18-34 38% 62%

35-54 62% 38%

55+ 56% 44%

Salary: Investors Non-Investors

<$30k 23% 77%

$30k-$74,999 50% 50%

>$75k 79% 21%

Company sponsored 401K 55%

Individual Retirement Account (IRA) 46%

Stocks in companies 40%

Mutual fund investments 35%

Adults 18+ Hispanic African American Asian

401K 55% 401K 64% 401K 59% 401K 57%

IRA 46% IRA 36% Stocks 35% IRA 45%

Stocks 40% Stocks 36% IRA 30% Stocks 35%

Annuities 26% Mutual funds 23% Bonds 26% Bonds 22%*

Bonds 25% Annuities 20% Annuities 21% Annuities 15%*

Agree/Completely Agree Same/Better Off Somewhat/Very Financially

Consumer Confidence in Economy Consumer Confidence in Economy

US Adults 18+ US Investors Hispanic African American Asian

Investor Confidence in the Stock Market

Consumer Investors 69% 31%

Hispanic Investors 69% 31%

African American 73% 27%

Asian American 66% 34%

What Are Their Financial Plans?

Adults 18+ Hispanic African American Asian

Increase Increase 37% Pay down 34% Pay down

12% Buy Stocks 14% 13% 17%

What Financial Services Do Investors

Adults 18+ Hispanic African American Asian

Start trading in 11% 19%

Savings & 13% 19% 19% 19%

Check Cashing 5% 11% 13% 12%

*Low sample size. Use directionally.

Insurance Purchases Planned by Age Group

Adults 18+ Hispanic African American Asian

Auto 28% 43% 35% 44%

Health 20% 31% 26% 39%

Homeowners 19% 27% 21% 37%

Life 14% 22% 27%

Which Media Influence

Top Media Influences on Financial Services/Insurance Purchases by Age Group

Adults 18+ Hispanic African American Asian

31% Digital Media Influence on Financial Services/Insurance Purchases

US Investors Hispanic Investors African American Investors Asian American Investors

US Adults 18+ US Investors Hispanic African American Asian

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